Levi Stock Surges After Analysts Raise Price Target On Stock, Retail Sentiment ‘Extremely Bullish’

The jeans maker raised its annual forecasts after topping second-quarter results on the back of strong demand for its newer denim styles and dresses.

Levi Strauss & Co. (LEVI) stock jumped over 7% during pre-market trading on Friday, after several brokerages raised their price target as the jeans maker's efforts to focus on its core denim brand and direct-to-consumer sales have attracted customers mainly in the European region.

Levi shares were hovering at $21.19 at the time of writing. Retail sentiment on the stock was in the ‘extremely bullish’ territory, improving over the ‘bullish’ a month ago, with chatter around Levi being ‘extremely high,’ according to Stocktwits data.

A bearish user on the stock said, “LEVI showing unexpected strength post earnings.”

Wells Fargo analyst Ike Boruchow raised the price target on Levi Strauss to $25 from $22, according to The Fly. Boruchow added that the denim maker delivered a third straight quarter of robust beat, with the momentum expected to continue into the third quarter (Q3).

The company’s efforts to streamline operations by selling off the non-denim brand Dockers to Authentic Brands, as well as focus on women’s wear by introducing newer styles such as wide-legged denims and dresses, have started to bear fruit at a time when U.S. President Donald Trump’s tariffs hit the broader apparel market.

Levi raised its annual revenue and profit forecasts for the year after the second-quarter results, which topped Wall Street expectations on Thursday, following the market close.

The second-half outlook could prove conservative, given the momentum of the business, if the macro environment holds, said Bank of America analyst Christopher Nardone.

The brokerage raised Levi’s price target to $24 from $21 and maintained a ‘Buy’ rating.

Levi has struck the right balance between authentic denim roots and infusing newness into the assortment, said CEO Michelle Gass, adding that the jeans maker is driving full-price sales as consumers gravitate to the new assortment.

“We're staying true to our denim heritage as we build out a compelling head-to-toe lifestyle assortment,” she added.

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